The wrong amount, and fees you never agreed to
A debt collector may not misstate the amount of a debt, and it may not collect any interest, fee, charge or expense unless the agreement that created the debt expressly allows it or the law permits it. A balance padded with collection fees, unexplained interest or processing charges can violate the FDCPA even if you owe part of the debt. The itemization in the collector's validation notice is where padding usually shows.
Yes, a wrong number is a violation. The FDCPA forbids a debt collector from falsely representing the amount of a debt, and it separately forbids collecting any amount, including interest, fees, charges or expenses, that the agreement creating the debt does not expressly authorize and the law does not permit.
This is often the easiest violation to prove, because it is on paper. The collector's own letters, compared with your original statements and the contract, tell the story.
What it looks like
- A balance that grew. The original creditor's last statement said one amount; the collector's letter says a much larger one, with no explanation.
- A flat "collection fee." A line item for collection costs or a percentage add-on that your contract never mentioned.
- Interest after charge-off. Interest added at a rate, or for a period, the agreement or the law does not support.
- Payment surcharges. A "convenience" or "processing" fee to pay by phone or card.
- Attorney's fees before any suit. Legal fees added to the balance though no lawsuit was filed and no court awarded them.
- Credits missing. Payments you made, or a settlement you reached, not reflected in the balance.
The law
Two FDCPA provisions do most of the work. Under 15 U.S.C. § 1692e(2)(A), a collector may not falsely represent "the character, amount, or legal status of any debt." Under § 1692f(1), a collector may not collect "any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law." A related rule, § 1692e(2)(B), forbids misrepresenting the compensation a collector may lawfully receive.
The paper trail starts with the validation notice. The FDCPA requires the collector to state the amount of the debt within five days after its first communication (§ 1692g(a)(1)). Regulation F requires the notice to show an itemization date and the amount owed on that date, then itemize interest, fees, payments and credits since, and give the current balance (12 C.F.R. § 1006.34(c)). An itemization that does not add up, or that shows fees the contract does not allow, is evidence.
What you have to show
That a debt collector stated or tried to collect an amount that was wrong, or that included a charge not expressly authorized by the agreement or permitted by law. The documents are your original statements, the agreement (the collector should be able to produce it), and every letter the collector sent. You do not have to prove you owe nothing.
What you can recover
Under 15 U.S.C. § 1692k(a), a collector that violates the FDCPA is liable for your actual damages, which can include overpayments, plus additional statutory damages of up to $1,000 per lawsuit. The FDCPA requires a company found liable to pay the consumer's reasonable attorney's fees and costs. Where the same padding was applied to many consumers, a class action is possible, with class statutory damages capped at the lesser of $500,000 or 1% of the collector's net worth.
In Florida the FCCPA provides actual damages, statutory damages up to $1,000 and punitive damages in the court's discretion (Fla. Stat. § 559.77(2)). In New York, GBL 349 provides actual damages or $50, whichever is greater, increased up to three times actual damages capped at $1,000 for a willful or knowing violation. This site does not estimate what a case is worth.
What to do now
- Gather the numbers. The original creditor's last statements, the collector's validation notice, and every later letter.
- Dispute the amount in writing. Within the validation period, a written dispute stops collection until the collector mails verification (§ 1692g(b)). See ignored dispute.
- Ask for the agreement. Request the contract that authorizes any fee or interest being charged.
- Keep payment receipts. If you paid a fee or a padded amount, keep proof of what you paid and when.
- Check your credit report. A wrong balance reported to the bureaus can be a separate problem. See credit report errors.
How to read an itemization
Start with the amount on the itemization date. Then look at each line added since: interest, fees, payments, credits. Ask two questions of every added dollar. Does the agreement that created the debt expressly allow it, or does a law permit it? And does the math add up to the current balance? A charge that fails either question is worth showing a lawyer.
If the padded amount is in a lawsuit
If you have been sued, do not ignore the papers. The answer deadline is short, and a default judgment would lock in the collector's number. See sued by a debt collector.
The clock
| Claim | Time to sue | Authority |
|---|---|---|
| FDCPA | 1 year from the violation | 15 U.S.C. § 1692k(d) |
| Florida FCCPA | 2 years from the violation | Fla. Stat. § 559.77(4) |
| New York GBL 349 | 3 years | N.Y. CPLR 214(2) |
In New York, New Jersey and Florida
New York. GBL 601(2) bars collecting or asserting charges or fees unless they are justly due and legally chargeable. DFS rule 23 NYCRR 1 also requires collectors it covers to substantiate a debt on written dispute. Consumers usually sue through GBL 349, which lets the court award a prevailing consumer reasonable attorney's fees. See the New York page.
New Jersey. The FDCPA applies in full. See the New Jersey page.
Florida. The FCCPA bars claiming or attempting to enforce a debt the person knows is not legitimate, or asserting a legal right it knows does not exist (Fla. Stat. § 559.72(9)). A padded balance can fit that rule. It reaches original creditors too, and the FCCPA requires a company found liable to pay the consumer's reasonable attorney's fees and costs. See the Florida page.
Common questions
Can a collector add a collection fee to my balance?
Only if the agreement that created the debt expressly authorizes it or the law permits it. Otherwise collecting it is an unfair practice under 15 U.S.C. 1692f(1). Ask for the agreement and the itemization, and compare them.
The collector charges a fee to pay by phone or card. Is that legal?
A fee incidental to the debt must be expressly authorized by the agreement or permitted by law. Whether a particular payment-processing fee is allowed depends on the contract and on state law. Keep the receipt and ask a lawyer.
I owe something, just not this much. Can I still bring a claim?
Yes. The FDCPA claim is about how the collector collected, not whether you owe any debt. Misstating the amount is a violation even when some balance is legitimately owed.
What should I do if the amount looks wrong?
Send a written dispute within the validation period saying the amount is wrong and asking for verification. The collector must then stop collecting until it mails verification. Keep a copy and proof of mailing.
Tell us what they did.
One conversation with an attorney, in your language. We tell you which laws the collector or the credit bureau broke, which deadline runs first, and what to save this week. If it is not a case we can take, we say so and tell you where to go.
(718) 484-7510The FDCPA and the FCRA require a company found liable to pay the consumer’s reasonable attorney’s fees and costs. Our fee arrangement is confirmed in a written retainer before we begin. English, Russian and Spanish in-house; an interpreter for any other language.